Time to be Debt Free
Is it really possible to be debt free?
Well, that depends on whether or not being debt free is important to you.
Debt, just like money, is a tool that can be used when playing the game of money.
One of the most important things to understand when it comes to money management is… you always have the choice.
Often we feel like we don’t have a choice, and because of this we are easily swayed when it comes to making some choices.
We are always at choice AND we may need to learn more about how to make good choices for ourselves.
When making a financial decision, you should think about the following:
1. Do you know the specific purpose for taking out this debt?
2. What is the anticipated return based on the use of the debt?
3. What is the plan for the repayment of the debt?
4. Do you know the inherent risks of using this type of debt?
Typically the reason for choosing to take a loan out or rack up a credit card is to strategically leverage other people’s money to achieve greater results.
This is what makes the cost of borrowing worthwhile.
Choosing to use debt conservatively will make the plan for debt reduction that much more achievable.
Then like all areas of money management the trick is to stick to the plan.
One of the biggest downfalls I see is watering down the plan and extending the same debt to many areas, creating a fuzzier picture of repayment.
Over time the debt then becomes habitual, and as such never gets repaid.